MTN SA has taken a decision to decommission its Mobile Money offering due to lack of commercial viability. MTN is working with its mobile money partners to ensure that its customers are not adversely affected.
Launched in 2012, the mobile money platform aimed to set new standards in lowest-cost banking in the country, with no monthly fees or minimum balance requirements. Applicable fees were directly related to customer transactions: cash deposits and withdrawals cost R4 regardless of the amount, while sending money transactions costs R1. Particular fees were waived for MTN customers, such as cash deposit and sending money fees. A maximum balance of R25 000 and a daily transaction limit of R1 000 are specified for the account. Through its partnerships with local retailers such as Pick ‘n Pay and Boxer, the mobile money platform attracted over two million registered customers.
“The operating costs of providing a mobile money platform has become prohibitive. The decision by MTN SA to shelve its mobile money service does not signify a complete exit from financial services. MTN is still committed to remaining a significant player in the financial services space and we are exploring opportunities in financial services space and other adjacent sectors,” says Larry Annetts, Chief Consumer Officer: MTN South Africa.
MTN remains committed to providing its customers with affordable mobile financial services. To that end, MTN will be introducing innovative and customised financial services products in the near future as it strives to lead the delivery of a bold, new digital world to its customers.